Know How to reduce Cost Per Hire in 5 simple steps?
When recruiting employees, every company analyzes the cost per hire. It not only involves the salary of the candidate but also the expenses associated with the use of internal resources used during the hiring process. As a hiring manager, you are responsible for the cost of hiring, and it can be a challenging job to reduce the cost of hiring while recruiting high volume talents.
Here are a few tips and tricks every hiring manager can utilize to increase their efficiency to reduce cost per hire and also save some time and effort.
Offer a clear Job Description
When you are advertising for a vacancy, most candidates read the Job Description to get a clear understanding of the responsibilities or tasks he/she needs to handle for a job. Suppose you are providing a clear job description with full disclosure of eligibility criteria, expected experience level, hours of employment, type of job (remote or in-office). In that case, you screen away candidates right away who do not have the required criteria. On the other hand, a job description containing details of training, additional benefits to the job and portrays the employer brand image has the higher chances of attracting the top tier talents.
Use of Atomization and AI
Instead of running through thousands of applicants, every candidate, use suitable recruiting software to screen qualified candidates with suitable parameters. 78% of employers have said that recruitment technology makes finding great talent easier than ever.
Moreover, it helps to speed up the hiring process, thereby reducing the cost per hire. Using artificial intelligence also ensures that the criteria of the candidate align with your business goals. Consequently, it is a great way to avoid bad hires and undergo the rehiring process.
Make use of Telephonic and Virtual interview
The cost per hire also depends on travel costs. You can cut off the travel cost by conducting the telephonic and virtual interview. After the onset of the pandemic, most hiring processes have been undertaken through virtual interview.
The telephonic and virtual interview helps you to analyze the candidate, and the two-way communication ensures a better understanding of each other’s expectations and requirement, facilitating the screening of candidates. Moreover, you can save time, energy and hassle of travel and yet select the most suitable candidate.
Reduce the Hiring time
One of the best ways to reduce cost per hire is to move the entire hiring process quickly. If you are undertaking or dragging long hiring process, you are increasing the cost of hiring by increasing the expense of recruitment technology, administrative cost, perhaps travel cost, and other internal resources. The longer the hiring process drags, the higher the cost per hire rises.
Moreover, in this cut-throat competition of talent acquisition, you may lose a high performing candidate if you delay the final announcement. The best way to reduce the hiring time is by setting deadlines or closing date for every step of the hiring process.
Appoint a Staffing agency
If you are looking for a way to hire talents without exhausting your company’s internal resources, the wisest decision is to outsource it to some reliable staffing agency. There are several staffing agencies that are expertise in recruiting talent for their client’s firm within a given period.
By hiring a staffing agency, you can reduce cost per hire by not hampering the productivity of internal resources as well as minimize the productivity loss due to the open position. Pragna Solutions is one of the leading companies that can offer you excellent outsource recruitment solution so that you can acquire talents and also save time and effort.
The Bottom Line
Hiring the right candidate within a short time frame can be challenging, but not impossible. These tips and tricks of reducing cost per hire can save you from rendering the cost of bad hires and rehiring. Reports and analytics of cost per hire help you realize the strengths and weaknesses of your hiring strategy. Therefore, you must monitor your cost per hire to develop the most effective hiring strategy.
Pragna Solutions lends you a helping hand to acquire top-tier talents without undertaking the headache of the hiring process. Our expert consultants are experienced HR’s who can pick out the best candidates for your business from the target pool to fulfil your business requirements and move you one more step towards your success.
Do visit Pragna Solutions website for more blogs on Recruitment, Hiring, and other related topics. Contact Us for your Recruitment needs.
